Overview
- Brown-Forman’s board reviewed a renewed approach from Sazerac and formally called the proposal “not actionable,” citing the views of Wolf Pen Branch, the Brown family group that holds a majority stake.
- Sazerac first approached Brown-Forman in May with an offer reported near $15 billion, about $32 per share, and in a later letter said it was ready to improve terms if the board engaged.
- The Sazerac proposal included incentives such as an above-market dividend, an option for Brown family members to roll equity into the combined company, and proportional board representation.
- Earlier this year Brown-Forman held merger talks with Pernod-Ricard that were halted after publicity, a development that prompted higher interest from Sazerac and changed the competitive landscape.
- With the board backing the family’s stance and reaffirming its strategy to expand brands and markets, Brown-Forman plans to press its independent plan while the episode keeps M&A interest in the spirits sector under watch.